Yahoo Finance Chairman of the Board of Cadence Opportunities Fund Karl Peter Siegling Buys 2.3% More Shares
Even if it's not a huge purchase, we think it was good to see that Karl Peter Siegling, the Chairman of the Board of Cadence Opportunities Fund Limited (ASX:CDO) recently shelled out AU$141k to buy stock, at AU$1.73 per share. Although the purchase is not a big one, increasing their shareholding by only 2.3%, it can be interpreted as a good sign.
Check out our latest analysis for Cadence Opportunities Fund
The Last 12 Months Of Insider Transactions At Cadence Opportunities Fund
In fact, the recent purchase by Karl Peter Siegling was the biggest purchase of Cadence Opportunities Fund shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than AU$1.72 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Karl Peter Siegling.
Karl Peter Siegling bought a total of 281.02k shares over the year at an average price of AU$1.79. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Cadence Opportunities Fund is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Cadence Opportunities Fund Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 35% of Cadence Opportunities Fund shares, worth about AU$9.5m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Cadence Opportunities Fund Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Cadence Opportunities Fund insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cadence Opportunities Fund. To help with this, we've discovered 4 warning signs (3 don't sit too well with us!) that you ought to be aware of before buying any shares in Cadence Opportunities Fund.
Of course Cadence Opportunities Fund may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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